In Re the Marriage of Lawson

In this case we decide whether the postdissolution employment separation allowance paid to a former spouse should be characterized as community or separate property.

I

Neil and Priscilla Lawson (Husband and Wife) were married on July 1, 1960, and separated June 11, 1985. Judgment of dissolution was entered on July 29, 1986. Husband’s employment with Shell Oil Company commenced in 1958, two years before his marriage, and continued until January 1, 1987. Pursuant to a stipulated order, Wife’s proportional community property interest in Husband’s pension benefits was awarded to her.

In November 1986, Husband received notice from his employer of the merger of two Shell divisions and the resulting elimination of two account sales manager positions, including his own. Shell initiated the merger in order to reduce or consolidate the work force or improve the efficiency of the work force. Shell offered Husband the option of participating :in a severance program specifically designed for those employees affected by the merger. In opting to accept the offer, Husband considered the fact that his employment in the newly merged division was likely to continue only for another two…